Uber is undervalued at 12-15x forward earnings despite strong fundamentals: 20%+ YoY bookings growth, 33% EBITDA growth, and expanding margins. The autonomous vehicle overhang is overblown; Uber is positioned as the demand aggregation layer that AV operators will need, and a valuation mismatch exists—Uber trades at a discount to Lyft despite higher scale and diversification, with significant optionality from advertising, Uber for Business, and the Delivery Hero stake not yet priced in.
At post $78.04·Now $78.66+0.8% since postedas of Aug 24, 1:28 PM ET
Author is bullish on Uber before earnings, taking a leveraged call position with 22x multiplier, betting on a significant upside move around the earnings event.
At post $68.18·Now $78.66+15.4% since postedas of Aug 24, 1:28 PM ET
Why Uber's latest earnings report was a major red flag for the state of the consumer
Uber masked weak mobility segment growth by cutting prices and raising eats prices to meet revenue targets. The mobility side is price-sensitive and declining, while eats is being squeezed; this suggests deteriorating consumer health and reliance on price-conscious riders and drivers.
At post $76.36·Now $78.66+3.0% since postedas of Aug 24, 1:28 PM ET
Author holds UBER as part of a $2M portfolio that has appreciated significantly. Despite expecting near-term market pulldown, maintaining long stock position while hedging with covered calls.
At post $79.17·Now $78.66-0.6% since postedas of Aug 24, 1:28 PM ET